Tax Treatment of Individual Retirement Arrangements

Overview

ERISA, the Employee Retirement Income Security Act, created an individual retirement arrangement—usually referred to simply as an IRA—to encourage taxpayers who were not participants in an employer-sponsored qualified retirement plan to save money to fund their future retirement needs. Later ERISA added a spousal IRA designed to provide retirement assistance to uncompensated spouses, and since then, new IRAs have been added, including Roth IRAs that offer tax-free qualified distributions rather than deductible contributions.

This course provides an overview of both traditional IRAs and Roth IRAs, including topics like eligibility rules, limits on contributions, and tax considerations for both traditional IRAs and Roth IRAs, as well as Roth IRA conversions and transfers and Roth IRA death benefit distributions.

Learning Objectives

Upon conclusion of this course, students will be able to:

  • apply the rules governing eligibility for and contributions to traditional and Roth IRAs
  • identify the requirements and benefits related to a spousal IRA
  • apply the tax treatment rules concerning contributions to and distributions from traditional and Roth IRAs
  • distinguish between traditional and Roth IRA distribution rules

Tax Year: 2020

Designed For

CPAs, EAs, and other tax professionals

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